Seiyu’s new CEO has announced the company will reverse its previous policy of closing unprofitable stores.
Speaking at his fist conference since he took the helm of Seiyu GK, a wholly owned unit of Walmart Japan Holdings, Toru Noda said that he believed the group could lower its cost base through a policy of aggressive store expansion.
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Noda said that the company would then leverage its increased visability and bargaining power with suppliers to bring lower prices to its entire store network, thereby reversing the fortunes of under-performing stores.
Seiyu plans to expand its store network through new store openings and acquisitions, he said.
“Although the closures of our unprofitable stores have so far tended to draw attention, we would like to increase the number of our stores from now on,” Noda commented.
He added the stores could compete with rival retailers by capitalising on their ‘‘overwhelming’’ price competitiveness that stems from the global merchandise procurement network of Wal-Mart Stores.
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